Start Trading Now Get Started
Advertiser Disclosure
Advertiser Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

USD/JPY Forecast: Rallies as Traders Await Key Central Bank Decisions

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
  • The US dollar has been rather bullish during the trading session on Monday against the Japanese yen as we continue to see plenty of noise.
  • But I also recognize that at this juncture, we are starting to see a little bit of a recovery, and this does make sense because both of these central banks have interest rate decisions this week.
  • And the last thing somebody wants to do is get caught ahead of that with the wrong position.

Short Covering?

So, I think you are starting to see a little bit of short covering. It does make quite a bit of sense. And I think that ultimately, we could make a run towards the 150 yen level. Whether or not we can break above there, that might be a different question altogether, but I do recognize that this is a scenario where traders are most certainly going to be looking at this through the prism of the differential between statements from Japan and the United States.

USD/JPY Today 18/03: Traders Await Bank Decision (graph)

If this USD/JPY pair can break above the 50 day EMA, then it's very likely that what we will then see is a significant run towards the 155 yen level. I don't expect that to happen easily because quite frankly, most things are working against the US dollar at the moment. And of course, you never know what's going to happen with the FOMC.

That being said, a short-term pullback at this point in time does make a certain amount of sense as well. And I think we're supported all the way down to about 147 yen. Anything below there has his pair running to the145 yen. level, but it must be stated that the session on Monday was rather impressive in favor of the US dollar. But again, I think a lot of what you're seeing here is short covering.

Want to trade our USD/JPY forex analysis and predictions? Here's a list of forex brokers in Japan to check out

Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

Most Visited Forex Broker Reviews